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Supermarkets Price Competition in Dallas Fort Worth Fluid Milk Market

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  • Chidmi, Benaissa

Abstract

This paper estimates the effect of the price war on the fluid milk demand in the Dallas-Fort Worth market and assesses the supermarket pricing conduct through estimating the price-cost margins of the retailers in selling fluid milk, and how these margins vary with the price war. The findings that supermarket chains in Dallas-Fort Worth market exercise market power and that demand for mil is insensitive to price changes.

Suggested Citation

  • Chidmi, Benaissa, 2007. "Supermarkets Price Competition in Dallas Fort Worth Fluid Milk Market," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34961, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeasm:34961
    DOI: 10.22004/ag.econ.34961
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    File URL: https://ageconsearch.umn.edu/record/34961/files/sp07ch03.pdf
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    References listed on IDEAS

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    1. Iwata, Gyoichi, 1974. "Measurement of Conjectural Variations in Oligopoly," Econometrica, Econometric Society, vol. 42(5), pages 947-966, September.
    2. Gollop, Frank M. & Roberts, Mark J., 1979. "Firm interdependence in oligopolistic markets," Journal of Econometrics, Elsevier, vol. 10(3), pages 313-331, August.
    3. Appelbaum, Elie, 1982. "The estimation of the degree of oligopoly power," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 287-299, August.
    4. Corts, Kenneth S., 1998. "Conduct parameters and the measurement of market power," Journal of Econometrics, Elsevier, vol. 88(2), pages 227-250, November.
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    Cited by:

    1. Rebecca L. O. Cleary & Rigoberto A. Lopez, 2007. "Is Wal-Mart Good for Competition? Evidence from Milk Prices," Food Marketing Policy Center Research Reports 101, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.

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    Keywords

    Demand and Price Analysis;

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